Lifetime Income Projections
Understand your lifetime projected income from multiple sources after state and federal income taxes
VeriPlan’s saving for retirement calculator software projects each of your income sources separately. Plus, it separately projects wage and salary and self-employment earnings for two different earners. With this sophisticated retirement savings calculator, you can control the growth for any income source by setting annual growth rates that are below, above, or equal to the expected inflation rate.
The VeriPlan retirement income calculator is also a highly functional lifetime income tax estimator. VeriPlan automatically taxes your projected ordinary income at the U.S. federal income tax rates, state income tax rates, and local income tax levels, as appropriate, while it automatically takes into account your tax filing status, deductions, exemptions, and adjustments.
You can select any state tax rates for your automated projections and also make adjustments, when tax rates change. State marginal income tax rates for the 50 states and D.C. are already integrated along with federal marginal income tax rates.
This retirement saving calculator automatically projects your family’s annual lifetime income in multiple categories, including:
- Normal earned employment income (wages, salary, bonuses, etc.)
- Working business owner income or self-employment income
- Pension and annuity retirement income
- Social Security retirement income
- Other income, including income from alimony, rental real estate, royalties, trusts, and farm income
With VeriPlan’s tax calculator functionality, you can project lifetime earned income and calculate retirement income easily, because it automatically takes into account your income taxes, capital gains tax distributions, property taxes, and other taxes.
VeriPlan’s retirement planning software includes automated discounted cash flow analysis features that project your future asset income and capital gains related to your cash, bond, stock, real estate, property, and other assets. The VeriPlan retirement savings calculator automatically taxes your projected capital gains and asset withdrawals at the federal, state, and local long-term capital gains tax rates or ordinary income tax rates, as appropriate. It also functions as a pre-retirement and retirement withdrawal calculator, providing annual lifetime projections of cash, bond, and stock withdrawals that are automatically withdrawn and taxed, if required, in years when you are projected to have a shortfall between your current income and current expenses. When you have positive annual net income, the VeriPlan retirement saving calculator automatically invests any positive annual cash flow after applicable income taxes.
VeriPlan’s pre- and post- retirement planning calculator features enable you to make annual positive and negative adjustments to your projected income. You can adjust your projected pre-retirement and post-retirement income at any age to reflect planned events, such as, unpaid sabbaticals, recurring or non-recurring bonuses, working part-time, expensive vacations, and other situations. You can also use VeriPlan’s automated income adjustment facilities to test the impact of unplanned income disruptions, such as involuntary unemployment, during any year of your lifetime financial plan. Furthermore, it acts as an automated retirement withdrawal calculator and retirement spending calculator with every projection you create.
VeriPlan’s INCOME graphic: Gross Earned, Retirement, and Other Income (real $/yr)
Below is an example of the blue-tabbed 1-INCOME graphic showing lifetime annual earned income projections, that the VeriPlan pre-retirement income and retirement income calculator develops for you automatically. This graphic shows Sue and Sam’s projected income, which is directly or indirectly associated with earned income sources and excludes income from their asset portfolio. In addition to earned income during working years, VeriPlan also includes fully integrated Social Security retirement calculator, retirement pension calculator, and retirement annuity calculator software features.
Earned income for Earners #1 and #2 will also reflect any income adjustments made in the table in Section 4 of the ‘2-Your Earned Income’ worksheet, which is entitled: “Making adjustments to your projected employment and actively-managed business income.” In this case, Sue and Sam are testing two adjustments to Sam’s employment income. First, they project that he will be promoted in four years and receive a substantial real dollar raise. Second, they project that Sam will be unemployed for six months when he is 50 years old. The adjustments are just illustrations of your ability to adjust your lifetime income projection assumptions in VeriPlan for any or every year, as you simultaneously project pre-retirement income and calculate retirement income.
Each 1-INCOME graphic, which is automatically generated for every VeriPlan lifetime retirement savings calculator scenario, shows your:
- Earned employment and actively-managed business income with your real dollar growth rates for Earners #1 and #2
- Pension and annuity income for Earners #1 and #2 entered on the yellow-tabbed ‘3-Your Pensions & Annuities’ worksheet
- Social Security income with adjustments that you choose
- “Other Income” that you entered on the yellow-tabbed ‘4-Your Other Income’ worksheet
These income sources summarize your earned income sources and your non-asset related retirement income that is generally related to your earned income. Annuities are the exception in the sense that they sometimes represent investment assets that you have transformed into contractual income sources. Other annuities may be acquired without asset financial transformation through a regular, contractual purchase plan. Either way, VeriPlan includes easy to use retirement annuity calculator features, as well as, retirement calculator with pension functionality.
Some ‘Other Income’ sources may also be passive sources that do not require your active work to be received. These passive ‘Other Income’ sources are included primarily because they are listed as ‘other income’ on your tax returns, they are taxed at ordinary income tax rates, and they are grouped with your other more actively-earned ‘other income’ sources.
The earned income graphic above excludes the annual yield or income from your various financial asset classes, and it excludes projected capital appreciation on your financial assets. With every lifetime financial planning scenario that it develops for you, the Veriplan retirement savings calculator automatically provides separate graphics that summarize your projected asset income and asset appreciation across your lifetime. Furthermore, it automatically provides lifetime graphics and data tables that combine the effects of earned income, asset income, Social Security income, retirement annuity income, and retirement pension income.
Your projected annual investment earnings associated to your financial assets are taxed, when appropriate, and reinvested, if you would not need such investment income and assets to be withdrawn from your asset portfolio to meet projected future living expenses. Assets are withdrawn automatically in years, when you are projected to have an expense versus income shortfall.
To find more information about VeriPlan’s extensive home investment calculator capabilities, use the “Investment Growth Calculator” pull-down menu in the blue menu bar near the top of this page.
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